If you're a first-time home buyer and you want to purchase a property from the available Seattle homes for sale, you must be aware of the three types of real estate markets. This is very important as the process of home ownership is quite complex and you need a plan to succeed in it; different markets require different strategies, which makes it essential for you to be aware of the differences of these marketplaces to know what you have to do to get that home you want.

Buyer's Market

A buyer's real estate market, also referred to as a cold market, is where there are a lot of buyers and only a few properties put up for sale. If you're buying in this kind of marketplace, then you're in an advantage since you will have a lot of choices and many sellers often take any offers into consideration. You may even buy a house lower than the list price and some sellers may possibly finance your closing costs.

To make sure that you're in a buyer's real estate market, you need to look for these signs:

• The houses in the inventory have stayed in the market for over six months.

• The number of homes of sale is higher than the preceding months or years.

• A smaller number of buyers are present, so the closed sale numbers are also lower.

• The comparable sale prices are much higher compared to the prices indicated in the active listing.

• The ads for real estate are growing bigger.

• There is a drop in the median sales price.

• The "For Sale" signs put up in properties stay longer, so the days on market or DOM is also longer.

Seller's Market

In a seller's market, also known as a hot market, there is a large number of buyers while there are only some houses available for sale. Sellers are generally at an advantage in this kind of market since they receive multiple offers. You will have a lot of competition if you're planning on buying here, so you must be prepared to make your best purchase offer.

It is hard to enter in this competition where you may have a lot of competitors for the house you want; sellers don't just consider any offer and bad ones are quickly rejected. They may even ask for some of your rights as a buyer to be waived. Because of this, you should seriously make a strategy that would make you win. However, if you are not that serious about purchasing that home, then it's not wise to compete with others.

The following are the signs you need to look out for to determine if you are in a seller's real estate market:

• The homes in the inventory have stayed in the marketplace for less than six months.

• The number of properties available is a lot smaller than the preceding months or years.

• Many buyers are present, so the number of closed sales is higher.

• The comparable sales price are much lower compared to the prices in the active listing.

• The ads for real estate are becoming smaller.

• There is a rise in the median sales price.

• The "For Sale" signs set up in houses stay only for a while and then immediately get a "Sold" or "Pending" sign attached to it.

Neutral Market

This type of real estate market is stable and normal, meaning it does not experience unpredictable swings. Here, the sellers and buyers are practically equal and the rates of interest are reasonably priced in general.

Purchasing a property in Seattle real estate is not very easy. You must first do some research and plan on what you should do. Understanding these three types of marketplaces is very important to help you succeed in buying the perfect home for you.